Paxos Securities Settlement Company became the first blockchain-native firm registered as a clearing agency under SEC Section 17A, announced May 28, 2026.
Registration is temporary per SEC order but represents clearest signal yet that blockchain-based settlement is moving from experiment to regulated financial plumbing. Seven-year regulatory path: 2019 No-Action Letter → 2020 AT&T/GE pilot → 2026 registration.
As registered CSD, PSSC can hold and settle traditional securities trades on blockchain rails with same-day (T+0) settlement. Competes with DTCC dominance in U.S. post-trade infrastructure.
Registration is temporary (max 18 months) per SEC Release 34-105562 — Paxos press release does not emphasize this limitation.
Paxos supports bilateral DvP, not CCP. Lower margin requirements because Paxos is not acting as central counterparty.